• Ansible

Why run a Trade Promotion?

Updated: Jan 12, 2021

A trade promotion is a competition that a business can run to promote its business. Companies can run trade promotions to showcase new product lines and increase consumer engagement with their goods. A trade promotion provides businesses with a different way of reaching their target market, rather than resorting to traditional methods of reaching consumers, trade promotions can be integrated into their favourite TV content, creating a more meaningful link between the product and the consumer.

There are two types of Trade Promotions

Game of Chance

When all competition entrants have an equal chance of winning, then the trade promotion is considered a game of chance. A classic example of this is where an entrant texts in a codeword to a competition SMS number and the winners are selected at random, usually as a result of a computer-generated selection, and skill plays no element in the winner determination. Most game of chance competitions are regulated separately by each Australian state and territory and some will require permits from the corresponding state or territory authority to ensure the competitions conform to their requirements and to give the final green light to go ahead.


  • Easy for consumers to enter, due to low entry requirements

  • Deciding a winner is quick and easy

  • Generally receives higher entries compared to Game of Skill

Game of Skill

Game of skill is where the winner of the trade promotion is determined entirely by skill. The classic example of a Game of Skill is where the entrant must write in 25 words or less why they should win the prize and the best response is chosen as the winner. A judging panel will then read through all entries and, based on specific criteria (e.g. the most creative answer), select a winner. Unlike game of chance competitions, game of skill competitions does not need a permit to be run.


  • Lower cost to run for the business

  • The user generated content could be used as promotional content

  • There is a greater level of consumer fulfilment as they have put effort into their submission to win the prize.

How can a trade promotion help your business?

Drive Revenue: By running a trade promotion you can keep your business and its products top of mind for consumers, which will help to increase sales. Trade Promotions can also use Premium SMS, where entrants can send through messages on their mobile phones costing 55 cents to enter the competition. This can help generate revenue through the promotion and help to recoup some of the costs of running the competition.

Engage Consumers: Rather than trying to connect with consumers through digital and social ads where passive scrolling means the ad will most likely go unnoticed, trade promotions require the consumer to actively engage with the brand, and then the brand is able to action consumers by them entering their details.

Increase Reach via Collaboration: Television networks are constantly running on air competitions and encourage collaboration with brands. These networks have millions of viewers so by supplying a prize for one of their competitions, your brand reach and exposure will be heightened, as well as being able to leverage the brand equity of the television programs to improve consumer attitudes towards your brand and products.

Drive Trial of New Products: By showcasing a new product via trade promotion you can drive awareness of the product, while showing potential customers, who will enter to try and win the product, the benefits of your new product. Through highlighting the benefits of your product, you encourage consumers to test out these benefits by trialling the new product.

What can Ansible do for you?

Ansible can assist a business in the start to finish process of running a trade promotion, from the creation and drafting of terms and conditions, to permit applications through to the use of Ansible’s certified systems to perform draws where all entrants has an equal chance of winning, Ansible can ensure that your trade promotion runs successfully.

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